Japan PM Abe calls for prompt debate on corporate tax cut

Japan's Prime Minister Shinzo Abe attends a news conference to announce a raise in the sales tax rate at his official residence in Tokyo October 1, 2013. REUTERS/Toru Hanai

TOKYO (Reuters) - Japanese Prime Minister Shinzo Abe said on Tuesday that he has asked ruling parties to promptly begin deliberations on cutting the country’s corporate tax rate.

“Japan’s corporate tax rate is high compared with international standards. This is an issue that needs serious scrutiny in order for Japan to overcome global competition, lure investment from around the world and achieve sustained economic growth,” Abe told a news conference.

Abe decided on Tuesday to increase the sales tax to 8 percent from 5 percent next April as planned. He said the government will compile a 5 trillion yen ($50.96 billion)stimulus package in December to help the economy cope with the sales tax hike.